Member Info for Ben456

I thought the deadline has passed and they have already reached over 90% meaning forced buyout is inevitable?

Which broker is this? I'm with Hargreaves Lansdown and they seem fine for me to keep the position in a private company. After today numbers looks like that is increasingly likely.

Im in the same boat, the loss was so big i might as well stick it out given i think the company are massively devising us with the current state of affairs. New management and price of gold stuck above 2600 can easily turn this around in a few quarters. I agree they have shafted everyone many times but not sure how much more damage they can do once they own 80-90% of the shares already.

So what next? if we do think things are turning round in a significant manner, and are happy to hold for a reasonable time period I take it we have to wait to see if Nikko get to 90% following the optional buyback?

If not then hummingbird will continue with 10-20% of private shareholders albeit with the likely hood they delist the shares from AIM. I personally think Q1 will be excellent and they have been massively downplaying recent improvements to get as many shares on the cheap as possible.

If they do wish to purchase the remaining shares at some point in the future I assume they will have to propose a different offer to the 2.67p currently on the table for those who didn't accept this time round?

Some on the board have alluded to those that continue to hold in the delisited company will be significantly diluted but i really dont see how this is possible without significant further upfront cash being deployed from Nikko to purchase these new shares.

Any advice much appreciated.

If we take a step back and think how much is at stake for Coris here, even if they were to improve the offer from 2.67 to say 4 or 5p and keep the shares listed on Aim then it would only cost them 6/8m more. This is very insignificant to them relative to how much the stand to lose if this goes into administration from equity/unsecured debt/business disruptions and loss of control.

If shareholders vote no they will 100% come back with a higher offer first before even considering administration. 6-8mm is literally nothing to them relative to the losses they stand to make from taking this over vs administration. Therefore lets keep some perspective on things and ignore the fear mongering by non holders on this board.

I would also like to add that Coris have no obligation at all to provide a liquidity event at 2.67p before delisiting from Aim. The are only doing it as they want as many shares as possible knowing that the company is incredibly undervalued at these levels.

All shareholders are fully aware Hum have done an awful Job over the past few years and are in short term financial difficulty but its clear this offer is derisory. By voting no I think its very achievable to get one of two things. First an improved offer closer to 4p for the current debt to equity swap with a commitment to slightly reschedule the debt repayments due in H1 2025 to later in the year or early 2026. I would also push for a commitment to not delist the shares from AIM to give long suffering shareholders a chance to make some money back should the company be able to turn things around in the years ahead.

Or secondly they realise the shareholders are not to be taken for fools with a strong no vote and therefore decide not to proceed with the debt to equity swap at present and provide a small amount of debt restructuring knowing fine well Hum have turned a corner and will easily be able to make the repayments going forward.

All the points they made about hum in the latest release were scaremongering and a large amount refer to long term problems the firm is facing such as drilling to extend the life of mines. These are not ongoing day to day concerns when the company is in survival mode and just trying to cover its short term debt payments.

I was lucky enough to get in fairly recently at an average price just over 7 but im still happy to risk it all and vote no so these crooks dont get away with stealing the assets from other long term holders who have suffered enough already.

Clearly the shares are worth significantly more than 2.67p currently being offered or coris wouldn’t be making an offer at all. They are sharks and certainly not a charity and know far more information than all of us on the current state of play.

The latest release had two paragraphs of scaremongering and we know the senior management will be getting taken care of behind the scenes by voting yes to the 2.67p deal.

A no vote is the only way forward from here, as it’s very clear administration is not the optimal outcome for Coris or that’s what it would be doing with the company right now. A 60%* no vote could easily lead to Coris coming back with a better offer or restructuring of debt terms to avoid administration. They have to much equity and unsecured loans for administration to be even close to the optimal solution from them.

Worse case we can drag it out for at least another month with a no vote and get an excellent chance of seeing the (likely) strong Q4 results before making an informed decision on any other offer on the table.

This really is the key driving factor that is not being talked about enough.

There is simply no way they put this into administration when they stand to lose 70mm of unsecured debt and 40% of equity which can easily be worth 30-50mm in a few years time. The 2.67p offer is a complete joke and should be voted against by everyone.

So just one day before the 4th Dec deadline. What are we expecting in the coming days in terms of news flow from hummingbird and timings of votes.

Thanks

Thanks Gold investor excellent post which I completely agree

Do you think they will allow private shareholders to remain in the non listed company or once they own 70% will they have a legal right to take over the rest at a certain price for those who don't choose to utilise the 2.67p liquidity event!!!

On this point Bushy, given nearly all the Coris loans were secured against hummingbirds assets if the administrators do get called in won’t they find it very easy to get full control of the assets they want anyway.

Yes there will likely be some negative changes in debt but it will also save them from having to buy shareholders out.

Thanks for the update this morning Gold investor. Given you now own 1.3% of the shares outstanding how do you plan on voting in the coming weeks if you dont mind me asking ?

Seems like you are somewhat torn between guaranteeing yourself the 2.66p vs acknowledging there is significant upside if this doesn't go into administration.

Hi bushy I’m a decent size shareholder and do plan on voting against the Coris proposal on your advise.

Can you however give some more colour as to why if they put it into administration they then couldn’t just take control of the assets and rehire the mining contractors under a different company name. Also how does running the company under a going concern impact the viability of the company, if and when they can pay off the debts overdue can the company go back to its normal state?

Thanks

I agree we need to all vote no and certainly will be voting that way. However with Coris owning 40% of the shares plus some dodgy dealings no doubt going through to a few bigger shareholders (likely Betts and some others who will get a backhand deal) is it not almost a certainty it will get voted through?

Why would I be diluted to zero? If i hypothetically bought say a million shares with an average price of 10p would this proposed dilution be around 4x so I now own 1/4 of the company prior to the debt to equity swap?

Ballio im in exactly the same position as you and given the paper losses I have accumulated plus the company clearly reaching a turning point im very keen to try and keep my shares as part of the private company and see how things shake out in 5 years time.

Given the company will now be controlled/owned by a subsidiary of Coris bank you would think that given owning mining companies is not their primary business that once the debt is repaid and the company is on a more stable footing that it will be sold. This sale should give you a liquidity point to get out of your holding at hopefully a much better level than 2.66p.

Does anyone have a good idea if you will legally be able to hold your shares in the delisted company or if you will be forced to take the 2.66p offer? Also how much of a dilution the debt to equity at 2.66p will be for my current holding?

Thanks